Partly Cloudy

Partly Cloudy

max temp: 9°C

min temp: 5°C

ESTD 1874 Search

Budget 2014: Savers in Suffolk will be a ‘paltry’ £19 a year better off with new combined tax-free Nisa, says Money Saving Expert Martin Lewis

16:08 19 March 2014

Chancellor of the Exchequer George Osborne holds the budget box

Chancellor of the Exchequer George Osborne holds the budget box

Savers in Suffolk will be able to put aside up to £15,000 a year tax free, the Chancellor announced today.

shares

Revealing his 2014 Budget, Chancellor of the Exchequer George Osborne said the current cash ISA and the stocks and shares ISA will be combined to create a new ISA - Nisa.

Nationally, banks and building societies have hailed the move, with nationwide describing it as “much-needed support for ordinary savers”.

But Moneysavingexpert.com founder Martin Lewis said the benefits of the Nisa would be significantly held back by paltry interest rates available on cash deposits.

He calculated the additional tax gain from the increased limit would work out to just £19 a year more on the best deal in the market, which pays 1.65%, for basic rate taxpayers who invest the full £15,000.

He said: “While it’s a good long term gain, dig through the current numbers and the advantage of increasing the cash ISA limit from £5,940 to the new Nisa limit £15,000 isn’t as big as many will think.

“This is because you can’t ignore the fact that cash ISA rates are at all-time lows.”

Will you be taking advantage of the Nisa? Share your thoughts on the budget via Twitter today using #Budget2014 #Suffolk, or leave a comment below.

shares

6 comments

  • It does strike me that cash ISAs are not all they're cracked up to be at the rates they offer are often lower than non-ISAs. However the NISA might well be useful for folk like me who are not interested in saving via stocks and shares.

    Report this comment

    Baptist Trainfan

    Wednesday, March 19, 2014

  • Surely this applies to the whole of the UK and not just for the people of Suffolk ?!

    Report this comment

    Sir Casm

    Wednesday, March 19, 2014

  • £19? My calculation is that the EXTRA amount permitted to be saved in a NISA is £15,000 minus the present (from April 5th) allowance of £5940 which equals £9060 extra allowance. At the 1.65% rate used that means interest on the £9060 is £150 p.a. Not paying tax at 20% saves £150 X 20% (15th) which is £30 ... not £19.

    Report this comment

    Johnthebap

    Wednesday, March 19, 2014

  • I think there is confusion between "investing" and "saving".

    Report this comment

    Ipswich Entrepreneur

    Wednesday, March 19, 2014

  • Where did he find "the best deal in the market, which pays 1.65%"? I'm assuming he's based in on someone starting off on an ISA for the first time and only having £15,000 in it from day one. My Cash ISA is at 1.85%. You can get fixed ISA (2 years I believe) at 2% and higher. Not much of an expert!

    Report this comment

    Chris Church

    Wednesday, March 19, 2014

  • £15,000 @ practically nothing % won't make much difference to what it is now.

    Report this comment

    Tony G

    Wednesday, March 19, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Man rescued after car carshes into pond

A driver was left stranded on top of an upturned car in the middle of a pond after the vehicle left a country road in the early hours of this morning.

One sixth form in Ipswich

West Suffolk College is forming a partnership with the biggest sixth form in Ipswich in a move which brings together two of the counties “strongest” education providers.

Secretary of State for Transport Patrick McLoughlin visited Andrew Harston, Director Shortsea of ABP, during a tour of Ipswich Haven Marina.

Transport Secretary Patrick McLoughlin got a first-hand look at the problems facing villagers on the A12 in Suffolk as he travelled from Ipswich to Lowestoft.

Health minister and Suffolk MP Dan Poulter last night labelled the move a step in the right direction, saying it will hugely benefit patients.

Evening and weekend GP services could return to Suffolk as early as this summer, it can be revealed today, but a reduction in the anticipated funding means just one centre will initially open to patients.

New smart tickets are to be introduced by Abellio Greater Anglia.

Season ticket holders on Abellio Greater Anglia trains are set to be among the first in the country to get a new plastic “smart ticket” later this year.

Sexual assault reported in Braintree

A teenage girl has reported being grabbed from behind and sexually assaulted in Braintree, Essex.

Tony Nelson took this photo of the rhea close to the water tower just outside Hollesley. Photo: cTony Nelson 2015

An exotic bird seen roaming the Suffolk countryside has been safely captured and taken in by an animal sanctuary.

James Attfield, who was murdered in Colchester, pictured with a picture frame

Anyone with information about the murder of James Attfield is being asked to “test their conscience” one year on from his death.

Shadow cabinet minister Rachel Reeves is at Saints coffee shop in Ipswich meeting voters.

Shadow Work and Pensions Secretary Rachel Reeves was highlighting two of Labour’s most distinctive policies during a visit to Ipswich as part of David Ellesmere’s election campaign.

The fire broke out in a kitchen of a ground floor flat High Street North, West Mersea at 8pm.

Firefighters tackled a flat blaze in north-east Essex on Thursday night.

Most read

Most commented

Topic pages